Bank uncovers Chicago taxi data breach

Elk Grove Village bank First American said it has uncovered a data breach stemming from purchases made in Chicago cabs. (Phil Velasquez/ Chicago Tribune)

Elk Grove Village-based First American Bank has filed a complaint with the City of Chicago resulting from what it calls a "pattern of fraudulent transactions" on consumers' debit and credit cards after they used them to pay for taxis.

It has become aware of a data breach that occurs when a card is used in Chicago taxis, including American United, Checker, Yellow, and Blue Diamond and others that use common payment processing companies.

First American said it first reported its knowledge of the breach to MasterCard 18 days ago, but said the situation has not yet been fixed.

It also claimed it has made repeated attempts to deal directly with the payment processors for the taxis, including Bank of America, to stop processing payment information for the companies involved in the breach. But, according to First American, that hasn't happened.

The bank recommends that its customers do not use debit or other cards at all in local taxis until the situation is resolved. First American said it plans to close and reissue cards to victims of the breach and vows to continuously monitor affected accounts for any suspicious activity.

Spokespeople for the City of Chicago and MasterCard weren't immediately available.

Bank of America offered this statement:

"Bank of America Merchant Services takes allegations of data security matters very seriously and is following all industry rules and legal mandates to research this issue. However, we cannot discuss specific client matters and have no additional comment at this time."